USDA Higher Blends Infrastructure Incentive Program (HBIIP)

The purpose of the HBIIP is to increase significantly the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The program is also intended to encourage a more comprehensive approach to market higher blends by sharing the costs related to building out biofuel-related infrastructure.

The USDA will begin accepting applications on May 15th.

The USDA Rural Business-Cooperative Service will be conducting webinars to provide an overview of the Higher Blends program. Potential applicants will gain knowledge about the application process including preparing an application, submitting applications using the online application system and accessing applicant resources.

Program Webinars:

  • May 12 at 1 PM CST
    Topic: HBIIP Orientation and Enrollment Emphasis
    Registration Link
    Dial In Number Only : +1 706-418-5005(United States)
    Passcode: 72734457#
  • May 19 at 1 PM CST
    Topic: HBIIP Fueling Station and Fleet Facility Emphasis
    Audience Link: Registration Link
    Dial-in Only: +1 706-418-5005(United States)
    Passcode: 02530265#
  • May 26 at 1 PM CST
    Topic: HBIIP Fuel Distribution Facility Emphasis
    Audience Link: Registration Link
    Dial-in Only: +1 706-418-5005(United States)
    Passcode: 95496687#

For more information, please click here.

To view the full formal announcement released by the USDA, please click here.

IL Volkswagen Environmental Mitigation Trust Fund

The Illinois Environmental Protection Agency (Illinois EPA) has been designated as the lead agency to administer funds allocated to Illinois from the Volkswagen Environmental Mitigation Trust (Trust). The Trust was established by Appendix D of the VW Settlement. Illinois’ initial allocation of funds is approximately $108 million to be used to fund mobile source diesel emission reduction projects. The funds are to be used for projects that reduce emissions of nitrogen oxides in Illinois.

Fund Funding Amount Available Application Due Date

Driving a Cleaner Illinois – CMAQ School Bus Retrofit

Driving a Cleaner Illinois is the Illinois EPA’s grant program developed to distribute funding for various types of diesel emission reduction projects involving on-road vehicles, off-road equipment, and electric charging. The Driving a Cleaner Illinois Program receives funding from a variety of sources, including the Volkswagen Environmental Mitigation Trust, U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program, and Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement (CMAQ) Program.

$1.8M IEPA Idling Reduction School Bus Program

Through the Driving a Cleaner Illinois Program, the Illinois EPA now has funding available for eligible projects of installation of fuel-operated heaters or direct-fired heaters (heaters) on diesel school buses operated at least 80 percent of the time in the Chicago ozone non-attainment area.

Click here for more info.

Diesel Emission Reduction Program (DERA) Funding

The U.S. Environmental Protection Agency (EPA) announced the availability of grant funding to implement projects aimed at reducing emissions from the nation’s existing fleet of older diesel engines. EPA anticipates awarding approximately $44 million in Diesel Emission Reduction Program (DERA) grant funding to eligible applicants.

Deadline for Applications:  Wednesday, February 26, 2020, at 11:59 p.m. (ET)

For more information on the National Clean Diesel campaign, visit

Click here for more information and the Request for Applications

Illinois Biodiesel Tax Incentive

Illinois enacted a sales tax incentive for the sale of biodiesel blends in 2003 and extended through 2018. Due to the financial advantage of selling biodiesel blends, most retail fuel outlets in Illinois sell B11 or higher. The exemption has two parts:

  • Partial (20{7f64623feb15e8ba3e2cc4fa119ce7bf1799c4d1be9e5e533264580cd485c622}) exemption of the state’s sales tax (6.25{7f64623feb15e8ba3e2cc4fa119ce7bf1799c4d1be9e5e533264580cd485c622}) applicable to the proceeds from the sale of biodiesel blends of 1-10{7f64623feb15e8ba3e2cc4fa119ce7bf1799c4d1be9e5e533264580cd485c622}
  • Full exemption of the state’s sales tax (6.25{7f64623feb15e8ba3e2cc4fa119ce7bf1799c4d1be9e5e533264580cd485c622}) applicable to the proceeds from the sale of biodiesel blends of 11{7f64623feb15e8ba3e2cc4fa119ce7bf1799c4d1be9e5e533264580cd485c622} or more

The blender is entitled to the biodiesel sales tax exemption. Credit is only allowed if the blender obtains a certification from the producer of B100 that specifies virgin or recycled feedstock.

Federal and State Incentives

The U.S. Department of Energy’s Alternative Fuels & Advanced Vehicles Data Center is your source to finding the federal and state incentives and laws surrounding air quality, fuel efficiency, and alternative fuels and advanced transportation technologies.